Simple promissory note? Convertible promissory note? What's more common and how would future investors react?
And if convertible, should there be a discount or a cap on it? Why or why not? I've read there are complications here with liquidation preferences and so forth.
That depends on what you are looking for on the long term.
Are you planning to go for an IPO or no ? If yes ? When ?
What is the expected growth for your company's capital ? would it reach 500 K ? do you need to raise funds ? how much ? In this case , would you accept your 50K to be a 10% ? or 100% ? How much capital you need to raise , and how much dilution of your equity will you accept ?
Your answer to these questions will lead to the right answer to yours.
Thanks
Tamer Maher
